DELICTUAL LIABILITY OF AN AUDITOR TO A THIRD PARTY RCG Trade & Finance (Pty) Ltd v Moores Rowland 2003 2 All SA 732 (O)
DOI:
https://doi.org/10.17159/gtb4a943Keywords:
general principles of delict, application, Public Accountants and Auditors Act, common law delictual liabilityAbstract
Since the landmark decision in International Shipping Co (Pty) Ltd v Bentley (1990 1 SA 680 (A)) it has been trite law that an auditor can incur delictual liability on the basis of misstatements made to third parties. The legislature has subsequently tried to clarify that liability by enacting section 20(9) of the Public Accountants and Auditors Act 80 of 1991.
In the case under discussion the common law remedy in terms of the actio legis Aquiliae has come under the spotlight again. Some aspects of this decision deserve comment, namely:
− the application of the general principles of delict in a manner which, it is submitted, is not entirely correct; particularly the use of concepts such as “unlawfulness” and “duty of care”; and
− the relationship between section 20(9) of the above act and common law delictual liability.
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